First Solar Inc (FSLR)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Sep 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Inventory turnover	2.30	1.58	2.09	2.46	2.61	3.29	3.50	4.10	2.80	2.62	2.30	3.29	3.06	3.58	4.01	3.58	4.66	4.67	5.05	5.67
Receivables turnover	2.58	4.61	4.07	2.47	4.08	4.38	9.38	8.08	7.76	5.45	8.48	6.81	10.57	5.09	3.77	9.26	11.80	9.34	7.91	4.63
Payables turnover	5.17	7.43	8.48	9.74	20.79	10.11	9.20	7.47	12.05	13.17	13.20	11.34	11.66	14.55	11.86	11.08	17.20	15.25	13.95	11.53
Working capital turnover	1.45	1.79	1.44	1.00	1.20	1.16	1.15	0.95	1.00	0.96	1.10	1.19	1.13	1.19	1.21	1.25	1.69	1.57	1.52	1.34

First Solar Inc's activity ratios reflect its efficiency in managing its working capital and inventory turnover, as well as its ability to collect receivables and manage payables.

1. Inventory Turnover: The inventory turnover ratio measures how efficiently the company manages its inventory. A declining trend in inventory turnover from 5.67 on December 31, 2019, to 2.30 on March 31, 2022, indicates that the company might be facing challenges in selling its products or managing its inventory efficiently. However, a slight improvement in the ratio to 2.30 by December 31, 2024, suggests a potential improvement in inventory management.

2. Receivables Turnover: The receivables turnover ratio signifies the company's effectiveness in collecting payments from customers. First Solar Inc's receivables turnover ratio fluctuated during the period, indicating variations in the company's collection efficiency. Notably, the ratio increased from 2.47 on December 31, 2023, to 4.61 on September 30, 2024, reflecting an improvement in collecting payments from customers.

3. Payables Turnover: The payables turnover ratio shows how quickly the company pays its suppliers. First Solar Inc's payables turnover ratio demonstrates a fluctuating trend over the reporting period, suggesting variations in the company's payment terms with suppliers. A decrease in the ratio from 17.20 on September 30, 2020, to 5.17 on December 31, 2024, may indicate a change in the company's payment policies or liquidity management.

4. Working Capital Turnover: The working capital turnover ratio evaluates how effectively the company utilizes its working capital to generate sales. A downward trend in the ratio from 1.25 on December 31, 2020, to 0.96 on June 30, 2022, suggests a potential inefficiency in utilizing working capital. However, an uptick in the ratio to 1.45 by December 31, 2024, signals an improvement in the company's ability to generate sales using its working capital.

Overall, the analysis of First Solar Inc's activity ratios indicates fluctuations in efficiency levels related to inventory management, accounts receivable collection, accounts payable management, and working capital utilization, which may require further examination to identify underlying operational challenges or improvements.

Average number of days

		Dec 31, 2024	Sep 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	158.74	231.49	174.58	148.30	139.90	111.01	104.28	88.96	130.43	139.57	158.97	110.88	119.23	102.02	90.99	102.02	78.29	78.13	72.25	64.39
Days of sales outstanding (DSO)	days	141.38	79.25	89.73	147.64	89.49	83.32	38.92	45.20	47.06	66.91	43.05	53.62	34.53	71.67	96.69	39.41	30.94	39.07	46.12	78.76
Number of days of payables	days	70.59	49.11	43.02	37.47	17.56	36.09	39.66	48.88	30.29	27.72	27.65	32.18	31.31	25.09	30.77	32.96	21.22	23.94	26.17	31.66

First Solar Inc's Days of Inventory on Hand (DOH) has shown fluctuation over the years, ranging from a low of 64.39 days on December 31, 2019, to a high of 231.49 days on September 30, 2024. This indicates varying levels of efficiency in managing inventory levels.

The Days of Sales Outstanding (DSO) metric reflects the average number of days it takes for the company to collect revenue after a sale is made. First Solar Inc's DSO ranged from 30.94 days on September 30, 2020, to a peak of 147.64 days on December 31, 2023. This indicates potential challenges in collecting revenue efficiently during certain periods.

The Number of Days of Payables measures how long it takes for a company to pay off its suppliers for goods or services purchased on credit. First Solar Inc's payable days ranged from a low of 17.56 days on September 30, 2023, to a high of 70.59 days on December 31, 2024. This shows variations in the company's payment practices.

Overall, analyzing these activity ratios provides insights into First Solar Inc's operational efficiency in managing inventory, collecting revenue, and paying off its payables over the years.

Long-term

	Dec 31, 2024	Sep 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Fixed asset turnover	0.80	0.68	0.73	0.75	0.78	0.74	0.73	0.74	0.81	0.83	0.89	1.10	1.05	1.24	1.24	1.13	1.47	1.34	1.36	1.40
Total asset turnover	0.36	0.32	0.33	0.32	0.33	0.33	0.33	0.32	0.34	0.33	0.34	0.39	0.36	0.41	0.42	0.38	0.50	0.44	0.44	0.41

First Solar Inc's long-term activity ratios show a trend of declining efficiency in its utilization of fixed assets and total assets over the years.

The Fixed Asset Turnover ratio has decreased from 1.40 in December 2019 to 0.80 in December 2024, indicating that the company generated less revenue for each dollar invested in fixed assets. This suggests a potential inefficiency in managing and utilizing its fixed assets for revenue generation.

Similarly, the Total Asset Turnover ratio declined from 0.41 in December 2019 to 0.36 in December 2024, reflecting a reduction in the company's ability to generate sales in relation to its total assets. This trend indicates a decreasing efficiency in using its total assets to generate revenue over the long term.

Overall, the declining trend in both Fixed Asset Turnover and Total Asset Turnover ratios for First Solar Inc suggests a need for the company to enhance its asset utilization efficiency to improve its long-term financial performance.